HC Deb 12 November 1992 vol 213 cc954-5W
Mr. Tony Banks

To ask the Secretary of State for the Environment what information he has concerning the number of former council properties that have been re-sold following purchase under the right-to-buy legislation.

Mr. Baldry

An estimated 200,000 households owned different accommodation in 1991 having previously bought a dwelling from a local authority as sitting tenants, whether through voluntary sales by the local authority or under the right-to-buy legislation. Purchasers from a local authority who were no longer owner occupiers are not covered by this estimate.

This figure is the most recently available and is from the 1991 Labour Force Survey housing trailer. The LFS is a sample survey and so the estimate is subject to sampling error.

Mr. Tony Banks

To ask the Secretary of State for the Environment how many(a) houses and (b) flats have been sold by councils under the right-to-buy legislation in each London borough, in each year since 1980.

Mr. Baldry

Tables showing the available information on total right-to-buy sales for each English local authority for every financial year since 1980 and a cumulative total to June 1992 were recently placed in the Library. In addition, the tables give data on total sales and on the number of flats sold.

Mr. Tony Banks

To ask the Secretary of State for the Environment (1) if he will make a statement on the level of finance available for those seeking to purchase their council properties;

(2)what meetings officials from his Department have had with representatives of lenders and lending institutions concerning lending practices with regard to former council property;

(3)what information he has concerning the availability of mortgage finance for the purchase of former council property in London; and if he will make a statement.

Mr. Baldry

Council tenants exercising their right to buy have at present the right to a mortgage from the landlord. Most tenants, however, prefer to take out a private loan. Currently only 4 per cent. of sales by value are financed through a mortgage from the landlord.

When a right-to-buy property is resold, subsequent buyers do not have the right to a mortgage from the landlord but must obtain private finance. Following reports that some prospective purchasers of ex-council flats were having difficulty obtaining mortgages, I met representatives of the Council of Mortgage Lenders and some of the major building societies. They assure me that it is their policy to consider every mortgage application, including those for former council properties, on its merits.

Mr. Tony Banks

To ask the Secretary of State for the Environment what information he has on the number of former council properties awaiting sale.

Mr. Baldry

No information is held by the Department on the number of former council properties awaiting sale.